NE 29-23-1 Nebraska Advantage Tax Incentives 2023-12-15

What wage levels must a Nebraska Advantage Rural Development Act or Microenterprise Tax Credit Act applicant meet for applications filed on or after January 1, 2024?

Short answer: For applications filed on or after January 1, 2024, the Nebraska Advantage Rural Development Act required wage level is $18.40 per hour, and the Nebraska Advantage Microenterprise Tax Credit Act wage limit is $1,652 per week. (For 2023 applications the figures were $16.82 per hour and $1,554 per week.) The Tax Commissioner reissues these indexed thresholds each year, so use the ruling matching your application's filing year.

Apply this to your situation

This page answers the general question as of 2023. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

Each year the Nebraska Department of Revenue publishes the wage thresholds that applicants must meet to qualify for two Nebraska Advantage tax-incentive programs. This ruling covers applications filed on or after January 1, 2024:

Nebraska Advantage Rural Development Act -- required wage level: $18.40 per hour (up from $16.82 per hour for 2023).
Nebraska Advantage Microenterprise Tax Credit Act -- wage limit: $1,652 per week (compared with $1,554 per week for 2023).

The thresholds are indexed and reissued annually, so the figures that govern an application depend on the year it is filed.

What this means for you

Businesses applying for these incentives

If you are filing a Nebraska Advantage Rural Development Act application on or after January 1, 2024, qualifying jobs must meet the $18.40/hour required wage level. Microenterprise Tax Credit Act applicants are subject to the $1,652/week wage limit. Confirm you are using the wage figures for the year your application is actually filed.

Accountants and advisors

Because these amounts are reissued every year, the Department publishes a separate Revenue Ruling per application year. Match the ruling to the filing year rather than assuming last year's numbers carry over.

Common questions

Q: What is the Rural Development Act required wage level for 2024 applications?
A: $18.40 per hour for applications filed on or after January 1, 2024.

Q: What is the Microenterprise Tax Credit Act wage limit for 2024 applications?
A: $1,652 per week.

Q: Which year's figures apply to my application?
A: The figures for the year the application is filed. The Department issues a new ruling with updated wage thresholds each year.

Q: Can I rely on this Revenue Ruling?
A: A Nebraska Revenue Ruling is a general guidance document that is "advisory in nature but is binding on the Nebraska Department of Revenue until amended," and it applies generally rather than to a single taxpayer. But it can be superseded or made obsolete by a later ruling or a change in statute or regulation, so confirm you are looking at the current version before relying on it.

Citations and references

Programs:

Nebraska Advantage Rural Development Act -- 2024 required wage level $18.40/hour
Nebraska Advantage Microenterprise Tax Credit Act -- 2024 wage limit $1,652/week

Source

Landing page: Nebraska Revenue Rulings
Original PDF: 29-23-1

Original ruling text

Revenue Ruling 29-23-1

Nebraska Advantage Tax Incentives

December 15, 2023

Wage Levels for 2024 Nebraska Advantage
Rural Development Act and
Microenterprise Tax Credit Act
Applications
This guidance document is advisory in nature but is binding on the Nebraska Department
of Revenue (DOR) until amended. A guidance document does not include internal
procedural documents that only affect the internal operations of the DOR and does not
impose additional requirements or penalties on regulated parties or include confidential
information or rules and regulations made in accordance with the Administrative Procedure
Act. If you believe that this guidance document imposes additional requirements or
penalties on regulated parties, you may request a review of the document.
This guidance document may change with updated information or added examples. The
DOR recommends you do not print this document. Instead, sign up for the subscription
service at revenue.nebraska.gov to get updates on your topics of interest.

Issue
What is the required wage level for Nebraska Advantage Rural Development Act and the wage
limit under the Nebraska Advantage Microenterprise Tax Credit Act applications filed on or after
January 1, 2024?

Conclusion
Beginning with applications filed on or after January 1, 2024, an applicant must meet the following
wage requirements to qualify for benefits:

Nebraska Advantage Rural Development
Act
2023 Required Wage
Level
$ 16.82 per hour

2024 Required Wage
Level
$ 18.40 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2023 Wage Limit

2024 Wage Limit

$ 1,554 per week

$ 1,652 per week

APPROVED:

James R. Kamm
Tax Commissioner
December 15, 2023

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

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